The government has moved to tweak the system to steer pension fund money, which is swelling to 1,400 trillion won, into the KOSDAQ market. The plan is to expand investment by reflecting the KOSDAQ index in pension fund evaluation criteria and sharply raise the scoring for venture investment so that funds flow to innovative corporations. The aim is to establish a stable funding base for the KOSDAQ market to back the so-called "Samcheondaq" milestone.
The Ministry of Planning and Budget on the 29th held the Fund Asset Management Policy Committee chaired by Acting Minister and Vice Minister Lim Gi-geun and finalized the "Basic direction for fund asset management in 2026" and the "Guidelines for evaluation of fund management for fiscal year 2026." This is the first time it has drawn up a basic direction that presents common principles for pension fund asset management.
As of 2024, the surplus funds managed by 67 domestic pension funds, including the National Pension Service and the Employment Insurance Fund, amount to 1,222 trillion won. Considering the increase in National Pension Service assets, the management scale is expected to grow to around 1,400 trillion won next year. The Ministry of Planning and Budget judged that, with pension fund assets growing rapidly, it is necessary to present a national-level direction beyond management at the level of individual funds.
The core of the new basic direction is to make the role of pension funds in the domestic capital market clearer. The Ministry of Planning and Budget urged pension funds to actively consider KOSDAQ stocks, as well as KOSPI, when investing in domestic equities. As of last year, pension fund investment in KOSDAQ was 5.8 trillion won, accounting for less than 4% of total domestic stock investment.
The Ministry of Planning and Budget sees KOSDAQ investment as a means to build a long-term virtuous cycle in the economy, beyond boosting short-term returns. It believes preemptive investment in innovative corporations can raise fund returns while helping to grow the industrial ecosystem. Accordingly, it plans to reflect part of the KOSDAQ index in fund management evaluation criteria to discourage operating institutions from avoiding KOSDAQ investment.
Expanding venture investment was also presented as a key task. Among the mid- to long-term assets of the 67 funds, the share of venture investment stood at 3.1 trillion won as of last year. The Ministry of Planning and Budget plans to double the scoring for venture investment evaluations from current levels to encourage pension funds to serve as a "primer" for the private investment market. Investment in new growth industries through policy funds such as the Public Growth Fund is also part of this trend.
The basic direction also includes expanding ESG (environmental, social and governance) investment and allocating assets that contribute to sustainable growth. The Ministry of Planning and Budget plans to have each fund draw up an asset management plan based on this basic direction, so that pension fund assets are managed in harmony with mid- to long-term national strategies.